2025.02.26
On February 25, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Royal Government of Bhutan in the capital city Thimphu, to provide Japanese ODA loan for the Hydro Power Plants Construction Project.
Signing ceremony
Outlines on the project are provided as below.
Terms and Amount of Loan
- Country (Target Areas)
Kingdom of Bhutan
(Samtse Dzongkhag and Samdrup Jongkhar Dzongkhag)
- Project Objective
The objective of the Project is to meet the increasing power demand stably and promote power export to surrounding countries in rainy season by construction of Jomori hydropower plant (90MW) and Druk Bindu I & II hydropower plant (18MW & 8MW) with transmission line thereby contributing to sustainable social economic development in Bhutan and decarbonization in South Asia Region.
- Project Component
(a) Civil Works for Hydro Power Plant and Procurement of Control & Protection and Hydromechanical Equipment
(b) Procurement of Electromechanical Equipment for Hydro Power Plant
(c) Procurement and Works for Transmission Line
(d) Consulting Services for Design, Engineering, and Environmental and Social Considerations for Hydro Power Plant
(e) Consulting Services for Electromechanical Equipment for Hydro Power Plant and Transmission Line
JICA will support for the above items (b), (c) and (e).
- Maximum Loan Amount
13,688 million Japanese Yen
- Annual Interest Rate
Project: 2.05%, Consulting Services: 0.55%
- Repayment Period
25 Years
- Grace Period
7 Years
- Procurement
General Untied
- Executing Agency
Druk Green Power Corporation Limited, Durk Hydro Energy Limited, Bhutan Power Corporation Limited
- Contribution to SDGs
Goal 7(Affordable and Clean Energy)
Goal 8(Decent Work and Economic Growth)
Goal 9(Industry, Innovation and Infrastructure)
Goal 13(Climate Action)
- Planned Implementation Schedule
1. Completion of the Project: May 2029, when Commencement of operation
2. Issuing of letters of invitation for consulting services (including Construction management support): March, 2025
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction:
Package for Electromechanical Equipment
Release date: May, 2025
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